KEY DEMOGRAPHICS

POPULATION

San Juan Island’s year round population is 7,810 with forecasts of 8,869 by 2010, and 10,065 by 2015.  The projected annual growth rate for the next 15 years is 1.9%.   San Juan County as a whole has a population of 15,900.  The largest town and county seat is Friday Harbor, which serves as the island’s business hub and shelters about 2,200 residents.  About half of the tax assessments for property owners are mailed to addresses outside of San Juan County, though some of these may be part time residents who spend winters in warmer climates.  More than 40% of island residents have a bachelor’s degree or higher.  Fifty percent of the county’s population is between the ages of 35-64 years old.

ECONOMY

Between 2002 and 2006, the job growth rate in San Juan County was 2.1 %, comparing well to the state and national figures of 1.8% and 1.1% respectively.  Consistent with the overall job growth experienced by the county the largest employment growth is in the construction industry.  Between 1996 and 2006, the employment growth rate in construction was slightly over 6% per year.

The largest industry by employment is government.  In 2006, the government sector, which includes public schools, accounted for almost 18 percent of total employment.  The local government accounted for about 80 percent of total government employment.  The government sector was followed by the trade, transportation and utilities categories, and the construction industry, 17 and 16 percent respectively.  In 2006, the services economic sector accounted for 80 percent, and goods sector accounted for 20 percent of all non farm employment.  San Juan County employment is projected to grow at an annual rate of 1.3 percent between 2006 and 2014, while the state employment growth is expected to be 1.8 percent.

San Juan County is highly dependent on the travel and tourism industry and tourism generates about 20 percent of all county employment and tax receipts.  The county economic development strategy includes plans to support the small business community, increase tourism ad participate in initiatives to develop a marine industry cluster.

WAGES AND INCOME

In 2006, the county’s annual average wage was $27, 563, well below the state average of $42,881.  In 2005, the San Juan County median hourly wage was $16.66, ninth highest in the state.  In 2005, personal income in San Juan County was $44,053, comparing favorably to the state average of $45,776 and the US figure of $41,994.  In 2006, the county median household income was $49,715 while the state median household income was $56,807.

1031Tax Deferred Exchanges

Part of my transition to the island has been to move my Seattle Real Estate investments to the island via 1031 Tax Deferred Exchanges, an excellent method for relocating your real estate investments and deferring your tax liabilities to a later date.  I work with Richard Dance, a 1031 Exchange Coordinator based in Seattle.  To read more about 1031 Tax Deferred Exchanges, please go to www.1031eci.com.

Real Estate Investment Consultation and Classes

I am also fortunate to have a real estate business partnership with Cathy Cavanagh,
a CPA and a Licensed Real Estate Broker.  She has been specializing in consulting in investment real estate in the Northwest for over twenty years.  Cathy is also a licensed instructor in real estate investments and teaches for her own licensed school, Real Estate Investment Institute LLC and for the WA Realtors.  You can sign up for her free Tax Alerts and check out her class schedule at www.cathycavanagh.com